Stock Performance Overview
On the trading day, Deepak Builders & Engineers India Ltd recorded a 3.19% gain, outperforming the Sensex which rose by 0.98%. The stock touched an intraday high of Rs.96, a 2.13% increase from its previous close, signalling a brief respite after four consecutive days of declines. However, this uptick did not alter the broader downtrend, as the share price remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Over the past week, the stock has fallen by 7.62%, significantly underperforming the Sensex’s modest 0.80% decline. The one-month performance shows a sharper drop of 20.36%, compared to the Sensex’s 3.33% fall. The three-month decline is even more pronounced at 38.39%, while the Sensex has only decreased by 2.03% in the same period.
Year-to-date, Deepak Builders & Engineers India Ltd has lost 17.34%, contrasting with the Sensex’s 2.94% decline. The stock’s one-year performance is particularly stark, with a 41.32% loss against the Sensex’s 8.26% gain. Over three and five years, the stock has shown no appreciable returns, remaining flat, while the Sensex has delivered 36.44% and 69.22% gains respectively. The ten-year comparison is even more telling, with the Sensex appreciating by 238.50% while Deepak Builders & Engineers India Ltd has not recorded any growth.
Financial Results and Profitability Metrics
The company’s recent quarterly results have been notably weak, contributing to the stock’s downward trajectory. Net sales for the quarter stood at Rs.45.05 crores, a steep decline of 69.1% compared to the average of the previous four quarters. Profit after tax (PAT) also contracted sharply by 65.4%, amounting to Rs.4.98 crores for the quarter.
Operating profit has fallen by 48.83%, a key factor behind the company’s very negative quarterly results declared in September 2025. The operating profit to interest coverage ratio has dropped to a low of 2.27 times, indicating tighter margins and reduced buffer to service debt obligations.
These results mark the third consecutive quarter of negative financial performance, underscoring the severity of the company’s current position within the construction sector.
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Long-Term Performance and Valuation
Despite recent setbacks, Deepak Builders & Engineers India Ltd has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. The company’s return on capital employed (ROCE) stands at a respectable 14.9%, reflecting efficient utilisation of capital relative to earnings.
Valuation metrics also suggest an attractive enterprise value to capital employed ratio of 1, indicating that the stock is priced at a level consistent with its capital base. However, these positives have not translated into share price appreciation, as profits have declined by 6% over the past year, coinciding with the stock’s 41.32% loss in market value.
Market Sentiment and Ratings
MarketsMOJO assigns Deepak Builders & Engineers India Ltd a Mojo Score of 29.0, categorising it as a Strong Sell. This rating was upgraded from Sell on 18 Dec 2025, reflecting a deterioration in the company’s financial health and market outlook. The market capitalisation grade is 4, indicating a micro-cap status with associated liquidity and volatility considerations.
The stock’s underperformance relative to the BSE500 index over one, three, and five-year periods further highlights its challenges in delivering shareholder value within the construction sector.
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Shareholding and Sector Context
The majority shareholding in Deepak Builders & Engineers India Ltd remains with promoters, indicating concentrated ownership. The company operates within the construction industry, a sector that has faced cyclical pressures and competitive challenges in recent periods.
While the stock’s recent performance has been subdued, it is important to note that the construction sector overall has experienced mixed results, with some companies managing to sustain growth and profitability despite macroeconomic headwinds.
Summary of Key Metrics
To summarise, Deepak Builders & Engineers India Ltd’s stock price has reached an unprecedented low of Rs.93, reflecting a sustained period of financial contraction and market underperformance. The company’s quarterly sales and profits have declined sharply, with operating profit margins and interest coverage ratios at concerning levels. Despite a strong long-term operating profit growth rate and attractive valuation ratios, these factors have not prevented the stock from lagging behind broader market indices and sector peers.
Investors and market participants will continue to monitor the company’s financial disclosures and sector developments closely as the stock remains under significant pressure.
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